The Bishop Museum’s board of directors approved the transfer of ownership of the historic tall ship Falls of Clyde to a community-based group that has been battling to save the deteriorating vessel from being scuttled.

The Board approved the agreement yesterday with Friends of Falls of Clyde, the group that wants to preserve and restore the ship. The non-profit group was able to get a certificate from a local insurance company for $5 million for liability insurance while the ship remains at Honolulu Harbor’s Pier 7.

Under the agreement, the group has 90 days to tow the ship to dry-dock in Kalaeloa. Friends of Falls of Clyde had previously gotten a commitment from Marisco Ltd. to dry-dock the vessel.